Adyen – All in One

Following the release of the 2nd quarter 2023 results, Adyen, the financial technology company, witnessed a more than 50% decline in its share price, plummeting to a low of €633 in October. This downturn was attributed to a deceleration in their revenue growth and increased personnel hiring spree. However, in their 3rd quarter results presentation, unveiled last week, Adyen’s share price surged by 36% , reaching €936. Adyen’s shares have exhibited considerable volatility, reflective of the challenges the company faces in navigating its expansion into new markets; coupled with the overall market sentiment.

Adyen provides businesses with a comprehensive platform for end-to-end management of payments, data, and financial transactions. Their platform enables businesses to seamlessly process both online and in-store payments within a unified system. This integrated approach offers businesses a holistic perspective on their operations. Adyen also holds a banking license, which allows them to hold their client’s funds and issue cards to those clients. This feature facilitates the smooth transfer of funds between different aspects of a business, enhancing overall operational efficiency. The data collected from the business’ users; and the business’ cash flow are all managed on a singular platform.

For Q3, Adyen reported processed transaction volume of €243 billion and a net revenue of €413 million, marking respective year-over-year increases of 21% and 22%. Throughout the year, Adyen has been actively expanding its sales team, employing the “land and expand” sales strategy. This approach involves encouraging potential clients to adopt one of their products initially and subsequently demonstrating the advantages of using additional offerings over time. Adyen, also held an investor day last week, where they provided clarity on their business strategy, which included moderating the pace of personnel hiring in 2024, clarifying how their investments will increase revenues and improve margins, their direct focus on large institutional clients and supporting smaller clients through integrating with fintech platforms. This contributed to Adyen’s 36% share price jump.

The payments space is highly competitive, but it appears that Adyen has a strategy to be competitive by their value-added offering.

Adyen is held by Lunar Capital’s Offshore Portfolio clients.

Key Indicators
Index / Fund / Rate
Start of Year
Last Week
This Week
% Change YTD
Index / Fund / Rate
Lunar BCI WW Flexible Fund
Start of Year
141.43
Last Week
172.81
This Week
176.17
% Change YTD
24.56% Lunar Capital increasesymbol
Index / Fund / Rate
JSE ALSI
Start of Year
73 049
Last Week
72 856
This Week
71 393 Lunar Capital stocktake arrow down
% Change YTD
-2.27% Lunar Capital stocktake arrow down
Index / Fund / Rate
NASDAQ Composite
Start of Year
10 467
Last Week
13 478
This Week
13 798 Lunar Capital increasesymbol
% Change YTD
31.82% Lunar Capital increasesymbol
Index / Fund / Rate
S&P 500
Start of Year
3 840
Last Week
4 358
This Week
4 415 Lunar Capital increasesymbol
% Change YTD
14.98% Lunar Capital increasesymbol
Index / Fund / Rate
Prime Lending Rate
Start of Year
10.50%
Last Week
11.75%
This Week
11.75%
% Change YTD
11.90% Lunar Capital increasesymbol
Index / Fund / Rate
USD/ZAR
Start of Year
16.98
Last Week
18.25
This Week
18.74 Lunar Capital increasesymbol
% Change YTD
10.37%Lunar Capital increasesymbol
Index / Fund / Rate
EUR/ZAR
Start of Year
18.44
Last Week
19.60
This Week
20.02 Lunar Capital increasesymbol
% Change YTD
8.57% Lunar Capital increasesymbol
Index / Fund / Rate
Brent Crude ($'barrel)
Start of Year
85.95
Last Week
85.17
This Week
81.62 Lunar Capital stocktake arrow down
% Change YTD
-5.04% Lunar Capital stocktake arrow down
Source: Iress

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